ABA welcomes privacy law amendment
The Australian Bankers' Association (ABA) has welcomed the introduction of a new Bill which will amend national privacy laws.
Chief executive of the organisation Steven Munchenberg believes the change will make it far easier for banks to assess credit card applications.
At present, lenders can only access very basic information about a person. This sometimes results in banks issuing credit cards to people who have amassed sizeable arrears with other companies.
Recent government figures showed that Australians have racked up a collective $36 billion credit card debt and there is little to stop irresponsible people from tricking banks into giving them more plastic products.
However, Mr Munchenberg believes the legal reforms will ensure that banks are only lending to people who have a track record of using credit responsibly.
"The comprehensive credit reporting system will provide banks and other lenders with a much better picture of a consumer's debt commitments," he remarked.
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